Trump believes Iran's worsening economy will push it toward agreements

President Trump signaled on Sunday that he's prepared to allow economic pressure on Iran to mount - as opposed to ordering a new military offensive - even as the country continues to defy the US.

According to Report, in an interview with Axios, Trump also didn't express any anger or frustration about the fact that Iran has been holding up an announcement on a deal with Oman to reopen the Strait of Hormuz. On Saturday, Iran issued a new list of demands to allow shipping through the strait.

What he's saying: "We are low-keying it," Trump said during a brief phone call.

"We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money."

He stressed that Iran "is in very bad shape" economically and has no money to pay its troops. The US naval blockade has exacerbated the Iranian regime's economic crisis, Trump said.

At the same time, Trump said that with oil down to slightly over $75 a barrel, US consumers are feeling less pain from the war.

"It will work out. It always works out. It's like a chess game," Trump said of the back-and-forth with Iran.